Getting out of a timeshare

[penn19]

I don’t know all the details but I have a friend who is in some financial difficulties and is trying to extricate themselves from their timeshare. I see all the commercials for someone who will help you get out of your timeshare but I feel like it has to be a scam.
Has anyone successfully walked away from theirs?

 

[TLSnell1981]

No help from me because I only own Disney timeshares. Halfway into my contract they still sell for about 2 1/2 times our purchase price.Although with Disney’s continued struggles DH wants to dump them NOW before they are no longer with the time, money or hassle.

 

[Judique]

Some have resale value. Disney DVC does and several others. Do you know which one he has?

Also, if he is underwater on one, not good.

'Walking away' is not a way to success as there are the implications of impact on credit. If the person still owes considerable money on it, took out a loan to buy it, they may be stuck with it pending filing chapter for bankrupcy.

 

[penn19]

Some have resale value. Disney DVC does and several others. Do you know which one he has?

Also, if he is underwater on one, not good.

'Walking away' is not a way to success as there are the implications of impact on credit. If the person still owes considerable money on it, took out a loan to buy it, they may be stuck with it pending filing chapter for bankrupcy.

That’s what I was afraid of. I do know that it was refinanced at one point. So I don’t think it’s a good financial picture. I just don’t want them jumping from one problem to another. And I wouldn’t want to recommend bankruptcy but at the end of the day they’re going to do what they’re going to do.
And it’s not a DVC. That I do know.

 

[_19disnA]

Many non-Disney timeshares have -0- resale value and there is often no active resale market. DO NOT let them fall for that scam you see on TV where you pay some upfront fee in order for them to find a buyer. Typically, they come back in a few months saying they couldn't find any buyers and simply pocket the upfront fee. The other dubious ads offer to provide you some kind of legal paperwork to get out of your ownership obligations. No idea if that works or just another scam.

Your example could get a bit more complicated if they financed the purchase and are still paying for it vs. owning outright. They could try to sell it back to the company they bought it from (if that company is even still in existence), but you will likely find they are more interested in selling new units and can't be bothered with the used ones.

 

[tvguy]

Some have resale value. Disney DVC does and several others. Do you know which one he has?

Also, if he is underwater on one, not good.

'Walking away' is not a way to success as there are the implications of impact on credit. If the person still owes considerable money on it, took out a loan to buy it, they may be stuck with it pending filing chapter for bankrupcy.

I thought Disney DVC required you to sell only to them, and at the price you paid?

 

[kdonnel]

I thought Disney DVC required you to sell only to them, and at the price you paid?

Disney, like many timeshares, has a right of first refusal for any resales. You reach an agreement to sell to a 3rd party and must submit the terms to Disney and if Disney finds the terms favorable to them, they can buy it at those terms. Otherwise the 3rd party gets to complete the purchase.

 

[Allison]

I thought Disney DVC required you to sell only to them, and at the price you paid?

No, not at all. There is a huge resale market and if Disney does buy it back, it isn't at what the seller paid.

 

[randumb0]

Hopefully they own in Key West. There's always a market for those

 

[Judique]

I thought Disney DVC required you to sell only to them, and at the price you paid?

No. Someone else explained right of first refusal, which is probably what you are thinking of.

The points I bought from Disney are going at almost 2 and 1/2 to 3 times what I paid for them. Boardwalk, Beach Club.

Rumor has it Disney has 'taken back' points when someone has chosen to return them, possibly in situations such as described. I guess you could call that walking away. Overall, the DVC experience has been outstanding.

 

[Praying Colonel]

OP, you might want to post on the Budget Board--you may get some people with tips.

 

[penn19]

OP, you might want to post on the Budget Board--you may get some people with tips.

Thanks for the reply. I might do that. I feel more comfortable with the Community board.
If it helps, I found out it’s Diamond

 

[kymom99]

Thanks for the reply. I might do that. I feel more comfortable with the Community board.
If it helps, I found out it’s Diamond

I just looked them up and read some reviews. Yikes!

 

[penn19]

I just looked them up and read some reviews. Yikes!

Yep. That’s what makes me concerned

 

[starry_solo]

If they stop paying the mortgage, it will get foreclosed on.
if they stop paying the dues, it may get foreclosed on

 

[_19disnA]

The OP is asking about a NON-DVC timeshare. Some of the prior comments seem to have missed that part.

 

[Allison]

The OP is asking about a NON-DVC timeshare. Some of the prior comments seem to have missed that part.

I don't think anyone missed that. People were responding to someone who commented incorrectly on dvc.

 

[pxidst119]

Can they try to rent it out to help offset what is due and give them some time to seek out options? There’s a website the timeshare users group that has a lot of info and also is a place you can post it for sale. The DVC board (also on The Dis) may have some very knowledgeable people that own at other resorts in addition to Disney. They may have some info.

 

[GreatLakes]

Do they have a mortgage? Some lenders have programs to help their mortgage holders restructure debt to avoid having to foreclose. This is often the cases if you got your mortgage through a credit union. That is where I'd start because they aren't going to give you a scammer, they will give you a legitimate company that will work with you and as part of the restructuring will look at other debt, like timeshares, and make recommendations. It is better to look at the entire debt picture instead of just one aspect of it unless that aspect is something you can discharge easily by selling it for at least what you owe.

 

[Monykalyn]

Thanks for the reply. I might do that. I feel more comfortable with the Community board.
If it helps, I found out it’s Diamond

Please direct them toward TUG-timeshare user group. They may be able to give it away if he doesn’t owe anything, or have other ways to unload that doesn’t involve a scam company. There a ton of info and extremely knowledgeable owners (nothin against DVC but DVC isnt really like owning other timeshares)